BofA Offers New Solution for Low-Down Mortgage

On the heels of its recent $5 billion commitment to help more than 20,000 individuals and families buy a home, Bank of America is offering a $0 Lender Origination Fee for clients who close a FHA, VA, Affordable Loan Solution, or Freddie Mac Home Possible mortgage with the bank.

This offer is available on first mortgage applications taken between April 15 and October 31, 2019. To reduce upfront costs further, Bank of America said that the limited time offer can be combined with:

• America's Home Grant program: This program has been expanded and now offers a lender credit of up to $7,500 that can be used towards nonrecurring closing costs, like title insurance and recording fees, or to permanently buy down the interest rate. The funds, which do not require repayment, are available in 39 markets today and will soon be nationwide.
• Affordable Loan Solution mortgage: This fixed-rate loan for low- and moderate-income borrowers offers a competitive rate with a down payment as low as 3% and no mortgage insurance. Today, 90% of these loans are to first-time homebuyers.
• Freddie Mac Home Possible mortgage: This is a fixed-rate loan with a down payment as low as 3% and lower-cost mortgage insurance.
• Down payment and cost savings programs offered by state and local agencies, nonprofits and employers.

Recently, Bank of America had announced a $5 billion Affordable Homeownership Initiative that is aimed at helping more than 20,000 individuals in low- and moderate-income communities realize their goal of homeownership.

“We know many of our clients want the power to own their first home, which can sometimes be challenging. One of the ways we’re helping is through our suite of affordable homeownership solutions and professional resources, which aid them in overcoming barriers and put sustainable homeownership within reach,” said D. Steve Boland Head of Consumer Banking at Bank of America.

The company will commit this additional $5 billion over the next five years to its Bank of America Neighborhood Solutions program.